Determinants of FDI in Central and Eastern Europe

The Effects of Integration into the European Union

verfasst von: Dr. Hanna Makhavikova

Verlag: Springer International Publishing

Buchreihe : Contributions to Economics

Enthalten in: Springer Professional "Wirtschaft+Technik" , Springer Professional "Technik" , Springer Professional "Wirtschaft"

Einloggen, um Zugang zu erhalten

Über dieses Buch

This book provides a detailed examination of foreign direct investment (FDI) inflows in Central and Eastern Europe (CEE) after closer integration in the European Union. An important facet of European economic integration was the development of a free-trade area in Central and Eastern Europe, which improved market accessibility. However, to date these relations have been little explored theoretically.

The book examines foreign investments in different transition countries from both a theoretical and an empirical perspective. It analyzes changes in the choice of location by foreign investors in nineteen CEE countries between 1992 and 2015, and shows that it is linked to the removal of intra-regional trade barriers. The findings suggest that regional integration increases the incentives for multinationals to invest in the participating countries, especially in those with larger markets and lower production costs.

Inhaltsverzeichnis

Frontmatter

Chapter 1. Introduction

Abstract

This chapter outlines the problem of identifying the main determinants of FDI in Central and Eastern Europe especially in the context of integration with the EU. It explains why FDI in CEE is worth investigating. It summarises main scopes and constrains in the existing literature. After that it sets main objectives and goals of the research. Finally, it outlines how the book is structured.

Hanna Makhavikova

Chapter 2. Theoretical Foundations

Abstract

This chapter provides basic information on the subject. After providing the basic concepts of FDI in the first section of the chapter, we analyse the key characteristics of FDI inflows to the region in the second section. Here we consider the FDI inflow trends in the region. We mostly explore the reports of international organisations, such as the United Nations Organisation, the World Bank, OECD, the International Monetary Fund etc. In the third part we provide an overview of the main empirical literature on FDI in CEE and its main limitations. In the fourth part we examine the gradual integration of CEE countries into the European Union, changes that occurred in the political and economic domain that stimulated an increase in FDI inflows.

Hanna Makhavikova

Chapter 3. Theoretical Model

Abstract

This chapter considers the theoretical framework. We started by considering the basic model offered by Neary (Manchester School 70(3):291–314, 2002) which studies location choices in homogenous countries, and examined three scenarios: equal external and internal trade barriers, regional preferential trade agreements, and zero trading costs between member countries. Further, we implemented these three scenarios for heterogeneous countries with different market sizes, external tariffs, labour and installation costs and analysed how changed market characteristics influence the previous findings. Finally, we derived a FDI model.

Hanna Makhavikova

Chapter 4. Empirical Model

Abstract

In this chapter we go on to test the hypotheses about FDI in the CEECs empirically. We employed panel data models to the CEE members and candidate countries of the EU during the period 1992–2015. The countries covered were Albania, Bosnia and Herzegovina, Bulgaria, Croatia, the Czech Republic, Estonia, Georgia, Hungary, Latvia, Lithuania, Moldova, Montenegro, Poland, Romania, Serbia, Slovakia, Slovenia, TFYR Macedonia, and Ukraine.

The first empirical part of the chapter describes the factors of the empirical model. In the second part, its robustness is checked, and in the third results are discussed. In the fourth section, we made an attempt to identify the main differences of FDI’s impact on different sub-regions and time periods.

Hanna Makhavikova

Chapter 5. Summary and Conclusions

Abstract

The conclusions in this chapter point to the main results and contributions. We also discuss the book’s limitations and areas for further research.

Hanna Makhavikova

Titel: Determinants of FDI in Central and Eastern Europe
verfasst von: Dr. Hanna Makhavikova
Verlag: Springer International Publishing
Electronic ISBN: 978-3-319-91878-5
Print ISBN: 978-3-319-91877-8
DOI: https://doi.org/10.1007/978-3-319-91878-5